Core Viewpoint - Southern Company Gas subsidiaries, Virginia Natural Gas and Chattanooga Gas, have made renewable natural gas (RNG) purchases that are expected to avoid 18,978 metric tons of CO₂e emissions, equivalent to the carbon sequestered by 19,036 acres of U.S. forests in one year [1] Group 1: Renewable Natural Gas (RNG) Overview - RNG is produced from naturally occurring methane from landfills, agricultural waste, wastewater, and food waste, significantly reducing greenhouse gas emissions by capturing methane before it enters the atmosphere [2] - RNG is compatible with existing natural gas infrastructure and appliances, facilitating a transition to a more sustainable energy source [2] Group 2: Company Initiatives and Goals - Southern Company Gas aims to deliver cleaner fuels as part of its commitment to sustainability, with a goal of achieving net-zero direct greenhouse gas emissions from operations by 2050 [3] - The recent RNG purchases are part of a broader initiative to support emission reduction efforts and follow the company's first RNG purchases in 2023 [3] Group 3: Legislative Support - The RNG deal is supported by policies in Virginia and Tennessee, including Virginia's Energy Innovation Act and Sustainable Gas Program, which encourage RNG production and delivery [4] - Tennessee's Natural Gas Innovation Act allows natural gas utilities to pursue cleaner energy options and reflect innovative natural gas costs in their pricing [4] Group 4: Future Projects - Virginia Natural Gas has announced a collaboration with the Hampton Roads Sanitation District to create a facility that will convert biogas from organic waste into RNG [4]

Market Overview - Volatility has returned to Wall Street due to escalating tensions between Iran and Israel, with the U.S. gradually getting involved [2][5] - The Dow declined by 0.7%, while the S&P 500 and Nasdaq fell by 0.8% and 0.9%, respectively [5] - Recent geopolitical tensions have unsettled markets, which could remain volatile for an extended period [9] Investment Recommendations - It is advisable to invest in safe-haven defensive stocks from the utility sector, including Atmos Energy Corporation (ATO), Fortis, Inc. (FTS), MDU Resources Group, Inc. (MDU), and NiSource Inc. (NI) [3][11] - These stocks are characterized by low beta (greater than 0 but less than 1), high dividend yields, and favorable Zacks Ranks [4][11] Company Profiles Atmos Energy Corporation (ATO) - Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states [10] - Expected earnings growth rate of 6% for the current year, with a Zacks Consensus Estimate improvement of 0.6% over the last 60 days [12] - Current dividend yield is 2.27% and beta is 0.71 [12] Fortis, Inc. (FTS) - Operates in the electric and gas utility business, primarily in Canada, the U.S., and the Caribbean [13] - Expected earnings growth rate of 3.4% for the current year, with a Zacks Consensus Estimate improvement of 3.3% over the last 60 days [14] - Current dividend yield is 3.70% and beta is 0.49 [14] MDU Resources Group, Inc. (MDU) - Provides value-added natural resource products and regulated energy delivery services [15] - Expected earnings growth rate of 5.6% for the current year, with a Zacks Consensus Estimate improvement of 1.1% over the last 60 days [15] - Current dividend yield is 3.18% and beta is 0.72 [15] NiSource Inc. (NI) - Delivers natural gas and electricity to approximately 3.7 million customers across six states [16] - Expected earnings growth rate of 7.4% for the current year, with a Zacks Consensus Estimate improvement of 0.5% over the last 60 days [17] - Current dividend yield is 2.83% and beta is 0.54 [17]

Core Viewpoint - ONE Gas, Inc. (OGS) is positioned to benefit from strategic capital expenditures and a high percentage of regulated operations, although it faces challenges from seasonality and competition in the clean energy sector [1][5][6] Group 1: Investment and Growth - OGS invested $703.2 million in 2024 and plans to invest $750 million in 2025, focusing on pipeline integrity, service extension, system capacity increase, and technology upgrades [2][8] - New rates implemented in Oklahoma, Kansas, and Texas are expected to enhance annual revenues, with pending rate cases likely to further boost the top line [3][8] - The company's supply assets are strategically located near gas reserves, leading to lower transportation and storage costs, providing a competitive edge [3][8] Group 2: Customer Base and Stability - OGS operates as a 100% regulated natural gas distribution utility, with over 92% of its customers being residential, which ensures stability and visibility of future earnings [4][8] - The company has seen an increase in customer additions, supported by improving economic conditions in its service areas [4] Group 3: Challenges - The demand for natural gas is seasonal, peaking from November to March, which can adversely affect profitability if winter weather is warmer than expected [5] - OGS faces strong competition in the natural gas industry, requiring it to maintain customer loyalty and service reliability [6] Group 4: Stock Performance - Over the past six months, OGS shares have increased by 3.5%, contrasting with a 2.1% decline in the industry [7]

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores. What are ...

Core Viewpoint - Northwest Natural (NWN) has shown a downtrend recently, losing 7.3% over the past four weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding, which is a bullish signal for the stock [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buyers are starting to push the price up towards the opening price [4][5]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may be losing control, indicating a potential trend reversal [5]. Fundamental Analysis - There has been a recent upward trend in earnings estimate revisions for NWN, which is a bullish indicator as it correlates strongly with near-term stock price movements [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 0.4%, indicating that analysts expect better earnings than previously predicted [8]. - NWN currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9].

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [3][4] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, appealing to value investors [4] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow, targeting growth investors [5] Momentum Score - The Momentum Score identifies optimal entry points for stocks based on price trends and earnings estimate changes, catering to momentum traders [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, growth potential, and positive momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [10] Stock Highlight: MDU Resources - MDU Resources Group, based in Bismarck, ND, operates as a utility natural gas distribution company and has a Zacks Rank of 2 (Buy) with a VGM Score of A [12] - The company has a Value Style Score of B, supported by a forward P/E ratio of 18.35, making it attractive to value investors [13] - MDU's earnings estimate for fiscal 2025 has been revised upwards, with the Zacks Consensus Estimate increasing by $0.01 to $0.95 per share, and it has an average earnings surprise of 1.3% [13]

Financial Performance & Guidance - Q1 2025 EPS reached $103[9], with 2025 EPS guidance set at $207-$211[9] - Infrastructure investments for 2025 are projected to be $14 billion - $15 billion[9] - The company issued approximately $210 million of equity via ATM[9] - Q1 2025 operating revenues increased by 280% to $7836 million, compared to $6121 million in Q1 2024[30] - Net income for Q1 2025 increased by 68% to $2838 million, compared to $2658 million in Q1 2024[30] - Net income per share for Q1 2025 increased by 62% to $103, compared to $097 in Q1 2024[30] Growth & Investment - Infrastructure investments of approximately $78 billion are planned for 2025-2029[14] - The company is targeting approximately 11% rate base CAGR for Peoples[16] - The company expects to raise approximately $315 million in equity in 2025[48] Regulatory & Acquisitions - Completed regulatory recoveries in the water segment are expected to increase annualized revenue by $896 million[43] - Pending regulatory recoveries in the water segment are requesting an annualized revenue increase of $472 million[43] - Gas segment surcharges in KY with annualized revenue increase of $05 million[43]

Financial Performance - GAAP net income was approximately $143 million, a $7.1 million increase quarter-over-quarter[21] - Adjusted diluted earnings per share increased from $1.37 in Q1 2024 to $1.65 in Q1 2025[48] - Southwest Gas expects to issue less than $100 million of equity in 2025 through the existing ATM program, pending Centuri exit path[56] - Southwest Gas reaffirmed its 2025 net income guidance of $265 - $275 million and CapEx of ~$880 million[19, 61] - The company is targeting a 6.0% to 8.0% net income growth and 6.0% to 8.0% rate base growth from 2025-2029[19] Regulatory Updates - Arizona general rate case approved, resulting in ~$80.2 million revenue increase, a 9.84% allowed return on equity, and a 48.5% allowed equity capitalization[21, 25] - GBGTC rate case approved, leading to a revenue increase of ~$9.6 million[25] - California rate case filed in September 2024, requesting a revenue increase of ~$44 million, with rates anticipated to become effective January 2026[25, 37] Growth and Operations - Approximately 40,000 new meter sets were added during the last 12 months, resulting in a 1.8% customer growth rate[21] - Operations and maintenance expense decreased by 1.1% over the first three months of 2025 compared with the same period in 2024[21] - The company projects a population growth of 4.40% in Arizona and 3.42% in Nevada from 2025 to 2030[42]

Core Insights - Southwest Gas Holdings reported a net income of $113.9 million for Q1 2025, an increase of $26.2 million compared to Q1 2024, driven by higher operating margins and improved performance at Centuri [4][7][20] - The company achieved a utility return on equity (ROE) of 8.2% over the last twelve months, with a 5.2% earnings growth in Q1 2025 [6][24] - An annual revenue increase of approximately $80.2 million was approved in Arizona, which included an increase in the allowed return on equity to 9.84% [6][25] Financial Performance - Net income for Q1 2025 was $113.9 million, compared to $87.7 million in Q1 2024, reflecting a significant improvement [4][20] - Adjusted net income for Q1 2025 was $119.4 million, up from $98.5 million in the same period last year, marking a 21% increase [7][22] - Diluted earnings per share rose to $1.58 in Q1 2025 from $1.22 in Q1 2024 [4][22] Operational Highlights - The utility added approximately 40,000 new meter sets, resulting in a 1.8% customer growth rate over the past twelve months [6][12] - The operating margin increased by $38.9 million, with combined rate relief in Nevada, California, and Arizona contributing approximately $27 million [12][20] - Operations and maintenance expenses decreased by $1.5 million, primarily due to reduced external contractor costs [12][20] Strategic Developments - The company is committed to fully separating Centuri and is evaluating market conditions for optimal timing and value [3][11] - A constructive outcome on the revenue phase of the Arizona general rate case has bolstered the company's regulatory strategy [2][6] - The company anticipates a final decision on the proposed system integrity mechanism settlement in the third quarter of 2025 [2][11] Guidance and Outlook - The company reaffirmed its 2025 net income guidance of $265 million to $275 million and projected capital expenditures of approximately $880 million [10] - The expected compound annual growth rate (CAGR) for adjusted net income from 2025 to 2029 is estimated to be between 6.0% and 8.0% [10] - The authorized rate base across various jurisdictions totals approximately $5.81 billion, with an average authorized return on common equity of 9.89% [25][26]

Group 1: Market Overview - Stocks experienced volatility as the Federal Reserve maintained interest rates in the range of 4.25-4.5% during its May FOMC meeting, amid high inflation and economic uncertainty due to tariffs [1][4] - The U.S. economy contracted by 0.3% in Q1 2025, contrary to expectations of a 0.4% growth, raising recession fears [7] Group 2: Investment Recommendations - Defensive stocks, particularly in the utilities sector, are recommended for investment, including The AES Corporation, DTE Energy Company, Atmos Energy Corporation, and American Water Works Company, all carrying a Zacks Rank 2 (Buy) [2][3] - These stocks are characterized as low-beta (beta < 1) with high dividend yields, making them attractive during market volatility [3] Group 3: Company Profiles - **The AES Corporation**: A global power company with operations in 14 countries, expected earnings growth rate of 1.4%, Zacks Rank 2, beta of 0.94, and a dividend yield of 6.74% [8][9] - **DTE Energy Company**: A diversified energy company with an expected earnings growth rate of 6%, Zacks Rank 2, beta of 0.47, and a dividend yield of 3.17% [10] - **Atmos Energy Corporation**: Engaged in regulated natural gas distribution, with an expected earnings growth rate of 5.3%, Zacks Rank 2, beta of 0.74, and a dividend yield of 2.15% [11][12] - **American Water Works Company**: Provides water services to over 14 million customers, with an expected earnings growth rate of 6.1%, Zacks Rank 2, beta of 0.73, and a dividend yield of 2.08% [13][14]